- At the beginning of 2016, a minor war broke out between two intellectual camps: one said that as a result of the collapse in energy prices, the US economy would slide in a recession as the bulk of the states responsible for job gains under Obama were the same ones that would get crushed with oil plunging. The opposing camp – which boasted Janet Yellen at one point – vociferously claimed that sliding oil prices are great for consumers and with thanks to the extra purchasing power, the US would not only avoid a recession but prosper. One year later we look back to see which, if any, of the two camps was correct.
- As it turns out, the truth was in the middle, because while the US in total may have avoided an economic contraction (at least according to the NBER), numerous states did in fact enter a recession.
- Based on new research by Kansas Fed Economist Jason Brown, several states suffered severe downturns as of the third quarter of 2016 that hampered growth nationwide. According to the report, Kansas, New Mexico, Oklahoma and Wyoming experienced recessions last year…
Read more at:These US States Entered A Recession In 2016